Good Luck Steel Tubes is coming up with a new green field manufacturing plant with the capacity to manufacture CDW/ERW precision tubes around 40,000 tonnes per annum. The company has taken this step on identifying the huge potential of CDW/ERW precision tubes in overseas and Indian market with the growing demand in oil & gas industry, infrastructure and automobile usages.
The total cost of the project will be around Rs 100 crore and will add around Rs 200 crore in the total turnover of the company and 50% of its products will cater the international demand. The financial need will be met by internal accruals, promoter’s contribution and debt. The management is positively hopeful that proposed expansion will be commercially operative by March/April 2015.
The company has already purchased approximately 26,000 square meters plot of land near to its existing plants at Industrial Area, Sikandarabad, Bulandshahar district in state of Uttar Pradesh. The said plot of land is suitable for the expansion plan because of it’s proximity to the existing plants of the company which will result in synergy of operation with existing units and help in cutting down the overhead expenditure.
